TITLE
Recommendation to authorize City Manager to execute an agreement with Wells Fargo Bank, N.A., for Trust and Custody services for the City of Long Beach for a period of two years, with the option to renew for three additional two-year periods. (Citywide)
DISCUSSION
Approval is requested to execute an agreement for two years with three two-year options to extend the agreement with Wells Fargo Bank, N.A., for Trust and Custody services related to the City's investment portfolio. A Custody Agent's (Agent) primary responsibility is to provide safekeeping of securities purchased by the City for its Investment Portfolio. In addition, other services include the coordination of all securities transactions, sales, purchases and maturities, the assurance of timely collection of payments due on securities held in safekeeping, and reporting all activity daily to the City Treasurer. The Agent also prepares various reports of activity, market value comparisons, and accounting and audit reports for authorized City personnel. An Agent must be an experienced financial institution or Trust Company.
The City's Investment Portfolio consists of approximately 150 securities that are held in either book-entry (electronic) form or at the Depository Trust Company. In addition, the Agent also performs the same responsibilities for our Investment Advisor who manages the long-term securities portfolio.
A Request for Proposal (RFP) for Trust and Custody Services was advertised on the City's website, notifying 184 potential bidders, which included 22 banks/credit unions with offices in Long Beach. Of those potential bidders, 25 downloaded the RFP via our electronic bid system. The RFP document was made available through the Purchasing Division and the Division's website at www.lonqbeach.qov/purchasinq. An RFP announcement was also included in the Purchasing Division's weekly update on Open Bid Opportunities, which was sent to 30 local, minority and women's business groups. No Minor...
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